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Rudik [331]
4 years ago
11

For a linear demand curve: Multiple Choice a) elasticity is constant along the curve. b) elasticity is unity at every point on t

he curve. c) demand is elastic at relatively low prices. d) demand is elastic at relatively high prices.
Business
1 answer:
Masteriza [31]4 years ago
6 0

Answer:

Option (d) is correct.

Explanation:

Linear demand curve represents the relationship between the price of the goods and the quantity demanded for a particular good and there is a inverse relationship between the price of the goods and quantity of goods demanded.

The linear demand is elastic in nature at relatively higher prices. If there is a any increase in the price level then as a result the quantity demanded for that good decreases. Slightly change in the price level will lead to larger change in the quantity demanded.  

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